A. The clerk may, upon the recommendation of the chief of police or his designee and as provided in subsection B below, suspend or revoke any license issued under the provisions of this chapter at any time where the same was procured by fraud or false representation of fact; or for the violation of, or failure to comply with, the provisions of this chapter or any other similar local or state law by licensee or by any of his servants, agents or employees when the licensee knew or should have known of the violations committed by his servants, agents or employees; or for the conviction of the licensee of any crime or offense involving prostitution, promoting prostitution or transactions involving controlled substances (as that term is defined in Chapter 69.50 RCW) committed on the premises, or the conviction of any of his servants, agents or employees of any crime or offense involving prostitution, promoting prostitution or transactions involving controlled substances (as that term is defined in Chapter 69.50 RCW) committed on the premises in which his live adult entertainment establishment is conducted when the licensee knew or should have known the violations committed by his servants, agents or employees.

B. A license procured by fraud or misrepresentation shall be revoked. Where other violations of this chapter or other applicable ordinances, statutes or regulations are found, the license shall be suspended for a period of thirty days upon the first such violation, ninety days upon the second violation within a twenty-four month period, and revoked for the third and subsequent violations within a twenty-four month period, not including periods of suspension.

C. The clerk shall provide at least ten days’ prior written notice to the licensee of the decision to suspend or revoke the license. Such notice shall inform the licensee of the right to appeal the decision to the city counsel and shall state the effective date of such revocation or suspension and the grounds for revocation or suspension. The hearing must be conducted within thirty days of the filing of the notice of appeal. The city counsel shall render its decision within ten working days following the close of the appeal hearing. Any person aggrieved by the decision of the city counsel shall have the right to appeal the decision to the superior court by writ of certiorari or mandamus within ten days of the date the decision was mailed to the applicant. The decision of the clerk shall be stayed during the pendency of any appeal except as provided in subsection D below.

D. Where the Cle Elum building official or fire marshal or their designees or the Kittitas County health department find that any condition exists upon the premises of a live adult entertainment establishment which constitutes a threat of immediate serious injury or damage to persons or property, said official may immediately suspend any license issued under this chapter pending a hearing in accordance with subsection C above. The official shall issue notice setting forth the basis for the action and the facts that constitute a threat of immediate serious injury or damage to persons or property, and informing the licensee of the right to appeal the suspension to the city counsel under the same appeal provisions set forth in subsection C above; provided, however, that a suspension based on threat of immediate serious injury or damage shall not be stayed during the pendency of the appeal.